Section 17-311. BONDING OF LICENSEES

 

311.1Persons engaged in any business required under this chapter to be bonded shall furnish and keep in force a bond running to the District of Columbia with corporate surety authorized by the Secretary of the Treasury to do business pursuant to §3 of the Act of August 13, 1894 (28 Stat. 279), as amended (6 U.S.C. §8), and by the D.C. Department of Insurance to do business in the District, in the amount specified in this chapter.

 

311.2The bond shall be conditioned upon the performance of all licensed work undertaken by the person, firm, or corporation, in accordance with laws and regulations in force in the District, and shall hold the District of Columbia harmless from the consequences of any and all acts performed by that person, firm, or corporation in connection with the business during the period covered by the the bond.

 

311.3If a surety becomes insolvent or bankrupt, or ceases to be authorized by the Secretary of the Treasury to do business pursuant to §3 of the Act of August 13, 1894 (28 Stat. 279), as amended (6 U.S.C. §8), or by the D.C. Department of Insurance to do business in the District, the principal shall, within ten (10) days after notice of this event given by the Director, file a new bond in like amount and conditioned as the original. If the principal fails to do so, the license of the principal shall terminate.

 

311.4The Director shall furnish to anyone applying for it a certified copy of any bond filed under this section upon payment of a fee of five dollars ($5). The certified copy shall be prima facie evidence in any court that the bond was duly executed and delivered by the person, firm, or corporation whose name appears on the bond.

 

311.5The required bond shall be in the penalty of five thousand dollars ($5,000), and shall be executed in accordance with the following form:

 

KNOW ALL MEN BY THESE PRESENTS

That we, _______ as principal and ______ as sureties, are held and firmly bound unto the District of Columbia and to any person who may be aggrieved by a violation by the principal of any law or regulation in force in the District of Columbia relating to the refrigeration and air conditioning business in the full and just sum of _____ dollars ($___ ) lawful money of the United States of America, for which payment, well and truly to be made, we bind ourselves, jointly and severally, our joint and several heirs, executors, administrators, successors, and assigns firmly by these presents.

Signed with our hands and sealed with our seals this ______ day of _____, 19 ______.

 

WHEREAS, the above bound ______ desires to engage in and practice the business of Refrigeration and Air Conditioning Contractor in the District, pursuant to the requirements of the Act of Congress approved December 20, 1944, 58 Stat. 819, and the refrigeration and air conditioning licensing regulations of the District of Columbia (Title 17 DCMR chapter 3) and in accordance with the laws of the District of Columbia relating to the refrigeration and air conditioning business.

 

NOW, THEREFORE, the conditions of the above obligations are such that if _____ shall well and truly observe and strictly and faithfully comply with the refrigeration and air conditioning licensing regulations of the District, including any amendments which may be hereafter made, and with all rules, regulations, and orders of the Mayor of the District, and all laws of the District relating to refrigeration and air conditioning work placed in, upon, or leading to or from any building or structure in the District, and shall save and keep harmless the District of Columbia and any person who may be aggrieved by the violation of the laws or regulations in force in the District of Columbia applicable to the performance of work aforesaid by the principal hereto from the consequence of any and all acts done by _____ in the execution and practice of his or her business as refrigeration and air conditioning contractor, then this obligation to be void; otherwise to remain in full force and effect for five (5) years from the date hereof.

 

311.6The surety on any bond may terminate its liability under the bond by giving thirty (30) days written notice of termination, served either personally or by registered mail, to the principal and the Director.

 

311.7Upon giving notice under §311.3, the surety shall be discharged from all liability under the bond for any act or omission of the principal occurring after the expiration of thirty (30) days from the date of service of the notice.

 

311.8Unless on or before the expiration of the notice period the principal files a new bond in like amount and conditioned as the original in substitution of the bond so terminated, the license of the principal to engage in the licensed business shall likewise terminate upon the expiration of the notice period.

 

311.9Any person aggrieved by the violation of any law or regulation in force in the District of Columbia relating to the licensed business shall have, in addition to a right of action against the person, firm, or corporation, a right to bring suit against the surety on the bond, either alone or jointly with the principal, and to recover in an amount not exceeding the penalty of the bond any damages sustained by reason of any act, transaction, or conduct of the principal which is in violation of law or regulation in force in the District relating to that business: Provided, that nothing in this section shall be construed to impose upon the surety on any bond a greater liability than the total amount of the bond, or the amount remaining unextinguished by any prior recovery or recoveries, as the case may be.

 

311.10If a recovery is had on any bond, the principal shall restore the bond to its original amount.

 

311.11Upon making any payment on account of its bond, the surety shall immediately notify the Director.

 

source

Commissioners' Order No. 55-2029, §§7(a)-(e), 5U DCRR, §1.7(a)-(e).